Yes, drivers must demonstrate financial responsibility when operating a vehicle in Texas. Most drivers fulfill this requirement when they purchase auto liability insurance. This insurance covers any injuries and property damage they cause to other people. While this is the bare minimum required, this can still leave you vulnerable after a car accident.
This article takes a closer look at the types of auto insurance available in Texas, what coverage is mandatory when driving, and what happens if you drive without insurance.
What Does the Financial Responsibility Requirement Mean in Texas?
In Texas, the financial responsibility requirement means drivers must prove they can pay for any injuries or property damage they cause in a car accident. The main goal is to protect drivers from being financially responsible for an accident they did not cause, while ensuring that drivers take responsibility for their vehicles on the roads and highways. Most drivers in Texas satisfy this financial responsibility requirement by purchasing liability insurance. However, Texas law allows drivers to meet this requirement in other ways.
- Purchasing a Surety Bond: A surety bond includes three participants: The person/business purchasing the bond, such as a motor vehicle dealer; the obligee or government agency that requires the bond; and the financial company that issues the bond.
- Cash or Deposit: You can also deposit cash with the Texas Comptroller.
- Purchasing Self-Insurance: This is a special certificate for businesses that own large fleets of vehicles.
What Types of Car Insurance Are Available in Texas?
While liability coverage is required and satisfies the financial responsibility requirement, drivers can purchase additional optional coverage. The six main types of auto insurance in Texas are:
Liability Insurance
Liability insurance covers injuries and property damage caused to other people in an at-fault accident and is required to satisfy the state’s financial responsibility requirement.
Collision Coverage
This pays for the damage to your car in a car accident, regardless of who is at fault. It is optional under Texas law, but your insurance company may require it if you’re financing your vehicle.
Comprehensive Coverage
This coverage pays to repair or replace your car for non-collision damage or losses, such as theft, vandalism, fire, and flooding. Comprehensive coverage is optional, but it may be required if you’re leasing your vehicle.
Uninsured/Underinsured Motorist Coverage
This coverage pays for your car repairs, medical bills, and lost wages if you’re in a collision with a driver who doesn’t have insurance or whose insurance can’t cover all of your costs.
Personal Injury Protection (PIP)
PIP covers your medical bills, funeral expenses, and a portion of your lost wages, no matter who is at fault.
Medical Payments Coverage
This covers medical bills and funeral expenses, but it does not cover lost wages.
What Is the Minimum Car Insurance Required in Texas?
The minimum car insurance required in Texas is the state’s liability insurance, which includes the following:
Texas’s 30/60/25 Liability Requirement
Texas requires the 30/60/25 coverage:
- $30,000 of coverage for injuries to one person
- $60,000 of coverage per accident involving more than one person
- $25,000 of coverage for property damage
Minimum liability insurance covers the medical expenses for people injured in an at-fault collision, damage to another person’s vehicle, and damage to another person’s property.
What Isn’t Covered by Minimum Liability Insurance?
Keep in mind that minimum liability insurance provides just limited protection. It does not pay for repairs to your own vehicle. Nor does it cover the loss or damage if someone steals your car or vandalizes it. Damage from hail, fire, or falling objects is not covered either. Neither are any medical bills that you incur in a crash. And if you are involved in an accident with a driver who has too little or no insurance, you will have to pay out of pocket for your damage and injuries.
Is Minimum Car Insurance Enough?
Minimum car insurance, or liability insurance, is enough to protect you legally, but it’s not enough to protect you financially if you’re involved in a major car collision.
Most medical bills will exceed the policy’s bodily-injury limits of $30,000 for one person and $60,000 for more than one person. You may be expected to pay the remaining medical bills that exceed those amounts.
In addition, the property damage payout is only $25,000. Newer cars or luxury vehicles often cost a lot more to repair or replace. If you can’t pay the difference, the other driver may file a lawsuit to collect the rest.
Fortunately, there are ways to protect yourself. You can purchase a policy with higher liability limits. You can also add an umbrella liability coverage, which will kick in once you have exhausted your liability limit.
What Happens If You Drive Without Car Insurance in Texas?
Car insurance is mandatory in Texas, so driving without car insurance is illegal. Here are some consequences you may face:
You Could Receive a Ticket and Fine
Texas law enforcement uses a system called TexasSure to check the status of your insurance during traffic stops. If you don’t have insurance, you could receive a first-offense fine of between $175 and $350 under Texas Transportation Code §601.191. To get the ticket dismissed, you must submit valid proof of insurance within 20 days from the date of your offense.
Your License Could Be Suspended
A repeat offense will cost you between $350 and $1,000. You may also have your license and vehicle registration suspended under Texas Transportation Code §601.231-§601.234 for up to two years.
Your Vehicle Could Be Impounded
After a second or third repeat offense, your vehicle could be towed immediately if you’re unable to provide proof of insurance. To retrieve the car, you must pay all storage and towing fees.
Dallas Police Department, for instance, enforces the Uninsured Motorist Ordinance, which allows law enforcement to tow your vehicle if you are stopped for a traffic violation and cannot show proof of insurance.
You Could Be Personally Responsible for Accident Costs
The biggest expense you may incur, however, is having to pay for damages out of pocket if you’re at fault in a car accident. These potential costs include medical bills for the other driver, vehicle repairs, property damages, and lost wages. Remember that the minimum insurance is often insufficient if you are in a serious accident. Being completely uninsured can be a financial catastrophe.
Proving You Have Car Insurance
Because car insurance in Texas is mandatory, you must be able to provide proof of insurance whenever you drive.
Keep either a physical insurance card in your vehicle at all times or digital proof on your phone or other device. Your proof of insurance must list the following details:
- Name of your insurance company
- The company’s NAIC code
- Your police number
- Start and end dates of your policy
- Your vehicle’s year, make, and model
- The Vehicle Identification Number (VIN)
- Your name and address
The police departments in Texas use TexasSure, the state’s automated vehicle insurance verification database, to check a vehicle’s coverage status. This automated system was designed to help reduce the number of uninsured motorists in Texas.
Since the program began, the number of uninsured drivers has dropped by more than half, from a high of 24.28% at its inception to an estimated 11.87% in September 2025.
What If Your Insurance Policy Recently Lapsed?
Driving a vehicle with a recently lapsed insurance policy is still illegal, and you could receive a fine as a first-time offender. If your policy has lapsed, don’t drive your car until your car insurance is reinstated. If reinstatement isn’t possible, get new coverage as soon as possible so that you can get valid proof of insurance before getting back on the road.
What Happens If an Uninsured Driver Hits You?
If an uninsured driver hits you, you can still get compensation for your losses. Here are some steps you can take:
Use Your Uninsured Motorist Coverage
File a claim with your insurance company if you carry Uninsured Motorist (UM) Coverage. Depending on your policy, this can help pay for your medical bills, vehicle repairs, and lost wages. You can also use your UM coverage when the other driver’s insurance isn’t enough to cover all your losses.
Use Your Personal Injury Protection Coverage
You may also be able to use your Personal Injury Protection (PIP) coverage to pay for additional medical costs.
Pursue the At-Fault Driver
You can file a lawsuit directly against the at-fault driver to reclaim some of your losses. However, collecting money from an uninsured driver may be challenging if they don’t have the assets or income.
Can You Drive Without Insurance If You Don’t Drive Often?
No, you can’t drive without vehicle insurance simply because you don’t drive very often. Driving infrequently does not eliminate the financial responsibility requirement. If you drive on any road in Texas, you must meet the state’s minimum liability coverage.
Owning a second vehicle or a seasonal vehicle that you rarely drive does not exempt it from coverage either. However, if your vehicle sits in the driveway and is never driven, you may not need to maintain coverage for it.
Will You Be Covered Driving Someone Else’s Car in Texas?
In Texas, insurance follows the vehicle rather than the driver. This means the vehicle owner’s insurance policy will provide primary coverage when you drive their car.
Most Texas insurance policies have an “omnibus clause” for permissive use that extends coverage to anyone who occasionally drives with their permission. As a result, the owner’s vehicle insurance will cover you if you borrow their vehicle. Furthermore, a family member or friend who occasionally uses the car may have coverage under this policy.
Keep in mind that some policies have restrictions on who is covered. If an unlicensed or suspended driver uses your vehicle, your insurance policy will deny coverage for an accident.
If you regularly drive someone else’s car rather than just occasionally borrowing it, you will need to be listed on their policy. This applies to people who live in the same household or family members who regularly use the vehicle.
What If You Cause an Accident While Driving Someone Else’s Car?
If you cause an accident while driving someone else’s car, the owner’s insurance policy will cover the vehicle repairs, damage to the other car, and medical bills for all parties. If the owner’s policy isn’t sufficient to cover all repairs, you may be able to use your own insurance policy to cover the rest.
However, if you drove the car without the owner’s permission, their insurance policy may deny coverage. In that case, you will be responsible for all medical bills, vehicle repairs, and property damage.
Here are some situations in which you may not be covered if you are involved in an accident while driving someone else’s car.
- You took the vehicle without permission.
- The owner has you listed as an “excluded driver.”
- You drive the vehicle regularly, but you’re not listed on the policy.
- The vehicle is being used for a purpose not included on the policy, such as business or commercial purposes.
Remember, before you borrow someone else’s car, create a checklist:
- Ask if the owner has insurance.
- Confirm that you have permission to drive it.
- If you’re a regular driver, ensure you’re listed on the policy.
- Check if you have additional coverage on your own policy.
What If You Can’t Afford Car Insurance in Texas?
Car insurance in Texas is expensive, but going without coverage altogether can result in even greater financial consequences. If your premiums are too high, try shopping around rather than simply dropping your coverage.
Besides comparing different insurers, ask about discounts. Some discounts include safe driver rewards and paperless billing. You should also consider raising your deductible to decrease your monthly payments. It’s important to remember, however, that a higher deductible means you’ll pay more out of pocket if you’re in an accident.
Remove any additional add-ons that aren’t necessary. And research usage-based or pay-per-mile insurance programs if you don’t drive very far. This option lets you pay a monthly base rate plus a small fee for any additional mile you drive.
What If No Insurance Company Will Cover You?
If standard car insurance companies won’t cover you, you can get mandatory coverage through the Texas Automobile Insurance Plan Association (TAIPA).
To qualify for TAIPA, you must prove that two licensed car insurance companies turned you down within the last 60 days. You must also possess a valid driver’s license or request an SR-22 to obtain a valid license.
TAIPA provides the state’s minimum liability coverage of 30/60/25 and requires that you apply using a licensed insurance agent.
Contact Our Attorneys in Huntsville
If you have questions about car insurance in Texas or were involved in an accident with an uninsured driver, our car accident attorneys can help. Contact us today to get answers to your questions or schedule a free consultation.